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Australian Standard

for design and construct

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General conditions of subcontract
AS 4303—1995
 This Australian Standard was prepared by Committee OB/3, General Conditions of
Contract. It was approved on behalf of the Council of Standards Australia on
27 November 1995 and published on 31 December 1995.

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The following interests are represented on Committee OB/3:
Association of Consulting Engineers Australia

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Australasian Railways Association
Australian Chamber of Commerce and Industry
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AUSTROADS
Construction Industry Engineering Services Group
Construction Policy Steering Committee
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Electricity Supply Association of Australia
Institution of Engineers Australia
Institution of Professional Engineers New Zealand
Law Council of Australia
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Master Builders Australia
National Construction Council/MTIA
National Public Works Council
Process Engineers and Constructors Association
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Royal Australian Institute of Architects

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Review of Australian Standards. To keep abreast of progress in industry, Australi an Standards are subject
to periodic review and are kept up to date by the issue of amendments or new editi ons as necessary. It is
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important therefore that Standards users ensure that they are in possession of the latest editi on, and any
amendments thereto.
Full detail s of all Australi an Standards and related publications will be found in the Standards Australi a
Catalogue of Publications; this information is supplemented each month by the magazine ‘The Australi an
Standard’, which subscribing members receive, and which gives details of new publications, new editi ons
and amendments, and of withdrawn Standards.
Suggesti ons for improvements to Australian Standards, addressed to the head offi ce of Standards Australi a,
are welcomed. Noti fi cati on of any inaccuracy or ambiguity found in an Australian Standard should be made
without delay in order that the matter may be investigated and appropriate action taken.

This Standard was issued in draft form for comment as DR 93140.

 AS 4303—1995
(Incorporating Amendment No. 1)

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Australian Standard
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seGeneral conditions of subcontract

for design and construct
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PUBLISHED BY STANDARDS AUSTRALIA

(STANDARDS ASSOCIATION OF AUSTRALIA)
1 THE CRESCENT, HOMEBUSH, NSW 2140
ISBN 0 7337 0245 7
 AS 4303— 1995 2

PREFACE

This Standard was prepared by the Joint Standards Australia/Standards New Zealand
Committee on General Conditions of Contract and issued as an Australian Standard.
This Standard is to be used in conjunction with the following project procurement
methods:

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(a) Design and Construct.
(b) Design Development and Construct.
(c) Design, Novate and Construct.

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If the project procurement method chosen for the Main Contract results in the Subcontract
incorporating design functions, then if the project procurement method is —
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(i) Design and Construct — the Main Contractor would provide the Main Contractor’s
Project Requirements, would not normally provide a detailed Preliminary Design and
would not require Novation of any subcontractors (including consultants);
(ii) Design Development and Construct — the Main Contractor would provide the Main
Contractor’s Project Requirements, would always provide a Preliminary Design and
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accordingly would complete Annexure Part A Items 14 and 15;
(iii) Design, Novate and Construct —the Main Contractor would provide the Main
Contractor’s Project Requirements, would always provide a Preliminary Design,
would complete Annexure Part A Items 14 and 15 and would complete Annexure
Part A Item 30 stating which secondary subcontractors (including consultants) or
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Selected Secondary Subcontractors are to be novated to the Subcontractor.
This Standard is part of the suite of contracts based on AS 2124 —1992 General
conditions of contract .

WARNINGS:
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1 This Standard is not recommended for use as the agreement

between the Main Contractor and a consultant, or in ‘design only’
consultancies where the work under the Subcontract does not
involve any Subcontractor’s Design Obligations.
2 Users of this Australian Standard are warned that Clause 17
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(Damage to persons and property) does not limit the liability of

parties for special, indirect or consequential losses.
This unlimited liability overrides any limitations or exclusions
permitted under Insurance Clauses 18 (Insurance of the work under
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the Subcontract) and 19 (Public Liability Insurance).

Parties wishing to limit their liability should seek legal and
insurance advice before entering a subcontract under this Standard.
3 In relation to insurances, the parties should have regard to
Clause 18 regarding the availability during the tender period of a
copy of the insurance policy in relation to the work under the
Subcontract, and Clause 22.1 regarding proof of evidence of
insurances generally before the work commences under the
Subcontract.
4 For the purposes of Clause 30.2, the inclusion of Quality Assurance
requirements in a contract will require detailed clauses in the
contract which have regard to the Quality Standard selected for the
work.
 3 AS 4303 — 1995

5 Main Contractors should ensure that their specific requirements are

fully and completely incorporated in the ‘Main Contractor’s Project
Requirements’ obtaining specialist advice if necessary. Where a
Subcontractor provides a proposed design as part of its tender the
parties should give consideration to whether that design should form
part of the Main Contractor’s Project Requirements.
6 Items in Annexure Part A which are marked with a hash symbol (#)
indicate that these items are to be deleted where the Subcontract

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provides for Separable Portions. If so, the items marked with a hash
symbol (#) are to be deleted in Annexure Part A and that part of
Annexure Part A entitled ‘Separable Portion’ is to be completed for
each Separable Portion.

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7 Clauses which are prefixed by an asterisk symbol (*) may be
omitted without making consequential amendments to these General
Conditions of Subcontract.
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A1  WARNING

 Legislation has come into force in some jurisdictions dealing with security of payments.
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 Parties intending to use this Standard should seek expert advice as to their rights and
 obligations under such legislation.
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 Copyri ght STANDARDS AUSTRALIA

Users of Standards are reminded that copyri ght subsists in all Standards Austr alia publi cati ons and soft ware. Except where the
Copyri ght Act allows and except where provided for below no publications or software produced by Standards Austr alia may be
reproduced, stored in a retr ieval system in any form or transmitt ed by any means without prior permission in writ ing from
Standards Australi a. Permission may be conditi onal on an appropriate royalt y payment. Requests for permission and informati on
on commercial software royalt ies should be directed to the head offi ce of Standards Austr alia.
Standards Austr alia wil l permit up to 10 percent of the technical content pages of a Standard to be copied for use
exclusively in-house by purchasers of the Standard without payment of a royalty or advice to Standards Austr alia.
Standards Austr alia wil l also permit the inclusion of it s copyright material in computer software programs for no royalty
payment provided such programs are used exclusively in-house by the creators of the programs.
Care should be taken to ensure that materi al used is from the current edit ion of the Standard and that it is updated whenever the
Standard is amended or revised. The number and date of the Standard should therefore be clearly identif ied.
The use of materi al in print form or in computer software programs to be used commercially, with or without payment, or in
commercial contracts is subject to the payment of a royalty. This policy may be vari ed by Standards Austr alia at any ti me.
 AS 4303— 1995 4

CONTENTS
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1 CONSTRUCTION OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 INTERPRETATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3 NATURE OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
4 WARRANTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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11
5 SECURITY, RETENTION MONEYS AND
PERFORMANCE UNDERTAKINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
6 EVIDENCE OF SUBCONTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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7 SERVICE OF NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
8 SUBCONTRACT DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
9 ASSIGNMENT AND SUBCONTRACTING . . . . . . . . . . . . . . . . . . . . . . . . 17
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10 NOVATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
11 PROVISIONAL SUMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
12 LATENT CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
13 PATENTS, COPYRIGHT AND OTHER INTELLECTUAL PROPERTY
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RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
14 LEGISLATIVE REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
15 PROTECTION OF PEOPLE AND PROPERTY . . . . . . . . . . . . . . . . . . . . . . 22
16 CARE OF THE WORK AND REINSTATEMENT OF DAMAGE . . . . . . . . . 22
17 DAMAGE TO PERSONS AND PROPERTY . . . . . . . . . . . . . . . . . . . . . . . 24
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18 INSURANCE OF THE WORK UNDER THE SUBCONTRACT . . . . . . . . . . 24
19 PUBLIC LIABILITY INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
20 INSURANCE OF EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
21 PROFESSIONAL INDEMNITY INSURANCE . . . . . . . . . . . . . . . . . . . . . . . 25
22 INSPECTION AND PROVISIONS OF INSURANCE POLICIES . . . . . . . . . . 25
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23 SUBCONTRACT SUPERINTENDENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
24 DIRECTIONS BY OTHERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
25 SUBCONTRACTOR’S REPRESENTATIVE . . . . . . . . . . . . . . . . . . . . . . . . 28
26 CONTROL OF SUBCONTRACTOR’S EMPLOYEES AND
SECONDARY SUBCONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
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27 SITE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
28 SETTING OUT THE SUBCONTRACT WORKS . . . . . . . . . . . . . . . . . . . . . 30
29 MATERIALS, LABOUR AND CONSTRUCTIONAL PLANT . . . . . . . . . . . . 30
30 MATERIALS AND WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
31 EXAMINATION AND TESTING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
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32 WORKING HOURS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
33 PROGRESS AND PROGRAMMING OF THE WORKS . . . . . . . . . . . . . . . . 34
34 SUSPENSION OF THE WORKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
35 TIMES FOR COMMENCEMENT AND PRACTICAL COMPLETION . . . . . . 36
36 DELAY OR DISRUPTION COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
37 DEFECTS LIABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
38 CLEANING UP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
39 URGENT PROTECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
40 VARIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
41 DAYWORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
42 CERTIFICATES AND PAYMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
43 PAYMENT OF WORKERS AND SECONDARY SUBCONTRACTORS . . . . 46
 5 AS 4303 — 1995

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44 DEFAULT OR INSOLVENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
45 TERMINATION BY FRUSTRATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
46 NOTIFICATION OF CLAIMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
47 DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
48 WAIVER OF CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
49 SERVICES AND FACILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

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ANNEXURE PART A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
ANNEXURE PART B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

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ANNEXURE PART C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
ANNEXURE PART D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
ANNEXURE PART E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
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INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

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First published as AS 4303 — 1995.

Reissued incorporating Amendment No.1 (October 2000).
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AS 4303-1995 (Reference Use Only), General

conditions of subcontract for design and construct
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